Brent Crude Price Rises to $84 after Slowdown
Amidst uncertainties in global demand, crude oil prices rebounded on Tuesday, after losing almost 4% in the previous trade, as fresh supply-side uncertainties.
The market uncertainties coupled with anticipated supply cuts by the Organisation of Petroleum Exporting Countries, OPEC, producers overshadowed a strong dollar, which discourages investors from buying dollar-indexed oil.
US dollar has been gaining strength while Great Britain Pounds or the sterling has been declining strongly, hitting the record low on Monday at £1=USD1.0777. READ: Gold Ends Higher as Dollar, Bond Yields Rise
Trading data shows that the international benchmark Brent crude traded at $84.19 per barrel, representing a 1.6% increase from the closing price of $82.86 a barrel in the previous trading session.
Also, the American benchmark West Texas Intermediate (WTI), trading at $77.94 per barrel at the same time, translated to a growth of 1.6% after the previous session closed at $76.71 a barrel.
Monday marked the second consecutive trading day during which both benchmarks plummeted to 9-month lows over demand concerns arising from fears of a global economic recession and the rising value of the US dollar.
Market analysts said prices were down as recession fears were further fueled because central banks of most major economies are taking a strict stance against rising inflation by increasing their interest rates.
Global data from across the world show that the US, the UK, Norway, Switzerland, Taiwan, South Africa, Indonesia, and the Philippines all increased interest rates. Accelerating the decline in prices, the dollar index rose to 113.31, hovering around 20-year highs.
Supply-side uncertainties, however, continue to impact price fluctuations as rising aggression in the Russia-Ukraine war is bringing new EU sanctions on the table and increasing the likelihood of supply disruptions.
Investors are eyeing the meeting of the OPEC+ producers on Oct. 5 when they will decide on their November output. The group had agreed to reduce production in October by 100,000 barrels per day (bpd).
# Brent Crude Price Rises to $84 after Slowdown#
